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Quick Facts

Project Name
Hotel Indigo – Downtown Baton Rouge Riverfront
National Trust Community Investment Corporation
Total Development Cost
NTCIC Allocation
200 Convention Street
Baton Rouge, LA
NMTC Consultant
taxadvantagegroup, llc
Project King, LLC/Project King Master Tenant, LLC
Cyntreniks, LLC
Square Footage
Leveraged Lender
North American Land Company (NALC), Inc.
Federal NMTC and HTC Investor
U.S. Bancorp Community Development Corporation
  (US Bank CDC)
Permanent Jobs
50 Direct
Construction Jobs
125 Direct
Low-Income Community
Poverty Rate 29.7%
MFI 76%
Go Zone Census Tract
State Enterprise Zone
Local TIF District
Financing Complete
September 2009

Hotel Indigo – Downtown Baton Rouge Riverfront

Baton Rouge, LA

The Project

In January 2011 Project King, LLC, the property owner, and Cyntreniks, LLC, a Louisiana-based real estate development firm, celebrated the grand opening of the 48,000 square foot, 93-room Hotel Indigo located in Baton Rouge, Louisiana. This event represented the end of a long journey in the development of the $23.6 million project made possible by a $17.9 million NMTC investment from the National Trust Community Investment Corporation.

Due to its proximity to New Orleans, Baton Rouge Parish initially absorbed nearly a quarter million temporary residents in the aftermath of Hurricane Katrina, settling at over 35,000 new residents. In 2006 Cyntreniks Group, LLC, an affiliate entity of Project King, LLC, acquired the project site – the Hotel King – in order to prevent the historic structure from being demolished. In 2008 Baton Rouge was directly in the path of Hurricane Gustav, and, as such, the Parish suffered substantial commercial property damage and temporary business interruptions for the majority of its establishments. The project site is located in a higher distress census tract, which is designated a FEMA Disaster Area. Cyntreniks rehabilitated the long vacant structure, putting it back into commercial use for its original purpose – a hotel. The project created more than 125 construction jobs and 50 permanent jobs, saved a historic building from demolition and supported the revitalization of Baton Rouge’s central business district.

The Financing

The NMTC Program provides gap financing. With total project costs of about $23.6 million and in addition to the NMTC subsidy, Cyntreniks needed to raise an additional $18.5 million of capital. This was accomplished by layering together capital sources that are rarely combined due to complicated programmatic and structuring requirements, including Federal and State Historic Tax Credits (HTCs), a State HTC Bridge Loan, State NMTCs, a one-day loan structure to cover acquisition and development expenses, state/local Tax Increment Financing (TIF) and additional private equity. taxadvantagegroup sourced the project’s NMTC Allocation, worked through due diligence
requirements with the NTCIC and advised Cyntreniks through to a successful closing. The ability of the project to purchase the NMTC equity at the end of the NMTC compliance period was the primary driver in utilizing the NMTC program. But for this equity infusion, this project would not have secured enough capital to move forward.

“We had reached a verbal agreement with a major bank lender to provide $7 million of the $12.8 million of leveraged debt in September, 2008. However, the financial crisis that engulfed the nation beginning later that month caused the deal to fall apart, and in order to make the project happen, our investor group had to self-finance $12.8 million of leveraged capital. The NMTC/HTC financing, therefore, was critical to making the project a reality. Our investors could do no more!”

– John Schneider, President of Cyntreniks LLC

taxadvantagegroup (tag) is one of the country’s most successful consulting firms specializing in New Markets Tax Credits, a powerful financing tool for community development projects in the United States.

Since 2004 tag has helped revitalize low-income communities across the U.S. by securing low-cost, flexible financing for high impact projects and providing a full suite of NMTC management services.

For more information contact:

Tammy C. Propst | 864.271.2737 | tpropst@taxadvantagegroup.com